Mr. Gabriel Obrador reports

CROWN POINT ANNOUNCES STRATEGIC ACQUISITION OF EXPLOITATION CONCESSIONS IN SANTA CRUZ, ARGENTINA

Crown Point Energy Inc.'s wholly owned subsidiary, Crown Point Energia SA, has entered into an asset sale and purchase agreement, dated as of Feb. 1, 2024, with Pan American Energy SL, Sucursal Argentina, an arm's-length party, to acquire all of seller's right, title and interest in the Piedra Clavada and Koluel Kaike hydrocarbons exploitation concessions.

Acquired assets

The company will acquire from the seller a 100-per-cent operating interest in Piedra Clavada and Koluel Kaike blocks located in the Santa Cruz province, on the southern flank of Golfo San Jorge basin, approximately 200 kilometres (km) southwest of Comodoro Rivadavia.

This acquisition represents an excellent opportunity for the company to acquire a 100-per-cent operated interest in already producing oil assets in Argentina and with an average daily production level of 3,500 bbl/d (barrels per day) during the three-month period ended Dec. 31, 2023.

The Santa Cruz concessions, comprising a total 71,593 acres, will include company owned extensive infrastructure in place capable of handling larger than current production volumes.

The purchase price payable by Crown Point to the seller is $12-million (U.S.) cash base consideration, subject to customary closing adjustments, plus certain contingent in-kind consideration that is payable throughout a 15-year period following the closing date.

With respect to the in-kind consideration, Crown Point will deliver to the seller a monthly quantity of oil produced from the Santa Cruz concessions that may range from zero up to 600 bbl/d, subject to the oil market price so determined for each month.

Crown Point intends to finance the base cash portion of the purchase price using its existing cash resources, operating cash flows, and by completing a debt and/or equity financing prior to closing of the acquisition.

Acquisition agreement

Completion of the acquisition is subject to, among other things, the receipt of all necessary regulatory and provincial approvals, including the approval of the TSX Venture Exchange and other customary closing conditions. Completion of the acquisition is not subject to approval by the company's shareholders. The acquisition is expected to close in April, 2024. The effective date of the acquisition is Jan. 1, 2024.

On Feb. 1, 2024, the common shares of the company were halted pending review of the acquisition agreement pursuant to TSX Venture Exchange Policy 5.3 (Acquisitions and Dispositions of Non-Cash Assets) as the matters contemplated by the acquisition agreement are considered to be a fundamental acquisition under Policy 5.3. Trading of the common shares will remain halted pending receipt by the TSX Venture Exchange of acceptable documentation pursuant to Policy 5.3.

About Crown Point Energy Inc.

Crown Point is an international oil and gas exploration and development company incorporated in Alberta, Canada, trading on the TSX Venture Exchange and operating in Argentina. Crown Point's exploration and development activities are focused in three producing basins in Argentina, the Austral basin in the province of Tierra del Fuego, and the Neuquen and Cuyano basins in the province of Mendoza. Crown Point has a strategy that focuses on establishing a portfolio of producing properties, plus production enhancement and exploration opportunities to provide a basis for future growth.

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